GUWAHATI: The Supreme Court of India has directed the Assam government to disburse ₹70 crore to Assam Tea Corporation Ltd (ATCL) in two equal instalments to settle long-standing dues owed to its employees. The ruling, delivered on Friday, January 24 by a bench comprising Justices Abhay S Oka and Ujjal Bhuyan seeks to alleviate the financial hardship faced by workers at the financially struggling corporation, which operates 14 tea estates.
The court's decision followed negotiations, with the state government eventually agreeing to the payment structure. “It took some time till the state government came around,” the justices remarked. The first instalment of ₹35 crore is due by June 30, 2024, with the second to follow by June 30, 2026.
The Supreme Court specifies that the funds must be distributed to the workers on a ‘pro-rata’ basis as soon as they are deposited with the ATCL. The justices also indicated that they would only consider releasing the state from further financial liabilities after the full amount has been paid.
This directive is the culmination of a long-running legal battle over unpaid wages and pension benefits owed to ATCL employees. The initial petition was filed in 2006 by the International Union of Food and Agriculture Workers, leading to a 2010 Supreme Court order mandating payment of the dues. However, due to non-compliance, a contempt petition was filed in 2012.
The court also hinted at potential drastic measures, including the sale of the 14 tea gardens, if the financial obligations to the workers are not met. This possibility was raised after the state cabinet, influenced by admissions from Assam chief secretary Ravi Kota, concluded that further financial injections into the failing corporation would be imprudent.
A committee established by the Supreme Court in 2020 estimated the total dues owed to the workers at approximately ₹414.73 crore, with an additional ₹230 crore owed in provident funds. On February 7, 2023, the court had already ordered the payment of approximately ₹650 crore to cover dues for workers across 25 tea gardens, including 15 managed by ATCL.